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Shown Here:Introduced in House (06/27/2002)

[Congressional Bills 107th Congress]
[From the U.S. Government Printing Office]
[H.R. 5035 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 5035
To replace the existing Federal price support and quota programs for
tobacco with price support and quota programs designed to assist the
actual producers of tobacco, to compensate quota holders for the loss
of tobacco quota asset value, to provide assistance for active tobacco
producers, including those producers who forgo obtaining a tobacco
production license, during the transition of the new programs, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2002
Mr. Fletcher (for himself, Mr. Hayes, Mr. Bishop, Mr. Rogers of
Kentucky, Mr. Whitfield, Mr. Lewis of Kentucky, Mr. Lucas of Kentucky,
and Mr. Hilleary) introduced the following bill; which was referred to
the Committee on Agriculture
_______________________________________________________________________
A BILL
To replace the existing Federal price support and quota programs for
tobacco with price support and quota programs designed to assist the
actual producers of tobacco, to compensate quota holders for the loss
of tobacco quota asset value, to provide assistance for active tobacco
producers, including those producers who forgo obtaining a tobacco
production license, during the transition of the new programs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tobacco Equity
Elimination Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
TITLE I--TOBACCO EQUITY ELIMINATION
Sec. 101. Definitions of active tobacco producer and quota holder.
Sec. 102. Payments to tobacco quota holders.
Sec. 103. Transition payments for active tobacco producers.
Sec. 104. Tobacco product manufacturer and importer user fees.
Sec. 105. Reimbursement of Commodity Credit Corporation expenditures.
TITLE II--TOBACCO PRICE SUPPORT
Sec. 201. Availability of tobacco price support.
Sec. 202. Repeal of related provisions.
Sec. 203. Effective date.
TITLE III--TOBACCO PRODUCTION LICENSES
Sec. 301. Definitions of historic tobacco producer and licensed tobacco
producer.
Sec. 302. Annual estimate of tobacco purchase intentions.
Sec. 303. National tobacco marketing factor.
Sec. 304. Issuance of tobacco production licenses.
Sec. 305. Annual authorized tobacco production under tobacco production
licenses.
Sec. 306. Termination of marketing quota programs and repeal of related
provisions.
Sec. 307. Effective date.
TITLE IV--TOBACCO ADVISORY BOARD
Sec. 401. Establishment and duties of Tobacco Advisory Board.
TITLE V--ASSISTANCE TO TOBACCO-DEPENDENT COMMUNITIES
Sec. 501. Center for Tobacco-Dependent Communities.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Tobacco production is conducted extensively in a number
of States and generates significant income in local communities
in these States, which are dependent on such production for
economic vitality.
(2) Tobacco products manufactured from tobacco grown in the
these States are transported in interstate commerce.
(3) While manufacturers of tobacco products enjoy
profitable circumstances, many tobacco growers and their
communities are in dire economic situations.
(4) Downturns in domestic manufacturing demand for tobacco
grown in the United States, losses in the United States share
of the world tobacco market, reduced domestic demand for
tobacco products, and State and Federal tobacco policies that
have inadvertently encouraged economic dependence on tobacco
have contributed to such dire economic situations.
(5) Many tobacco-producing communities are experiencing the
loss of tobacco farms, reductions in quota level, and a lowered
value for tobacco quotas.
(6) Such communities often have difficulty developing non-
tobacco income, and are therefore quite dependent on tobacco
and vulnerable to changes in the tobacco-growing industry.
(7) Domestic and world economic trends have had a
disproportionately harsh impact on small family farms and on
their communities, as the number of tobacco farms in the United
States declined by more than 50 percent between 1978 and 1997.
(8) A failure to respond to the current crisis affecting
family farms will result in a continued reduction in the number
of such farms and the jobs and income that they provide to
their communities.
(9) A continued program of assistance will provide many
benefits to most tobacco-dependent communities, particularly to
small family farms.
(10) While tobacco-growing States have some financial
resources to support community revitalization, few States have
the resources necessary to support the transition from
dependence on tobacco to a varied economy.
(b) Purpose.--It is the purpose of this Act to provide assistance
to tobacco-dependent communities, and particularly to those comprised
of small family farms, to assist them in making the transition from
tobacco-dependent economies to a diversified economic base.
TITLE I--TOBACCO EQUITY ELIMINATION
SEC. 101. DEFINITIONS OF ACTIVE TOBACCO PRODUCER AND QUOTA HOLDER.
In this title:
(1) The term ``active tobacco producer'' means a owner,
operator, landlord, tenant, or sharecropper who--
(A) shares in the risk of producing tobacco on a
farm where tobacco is produced pursuant to a tobacco
farm marketing quota or farm acreage allotment
established under the Agricultural Adjustment Act of
1938 (7 U.S.C. 1281 et seq.) for the 2002 crop year;
and
(B) planted the crop, or is considered to have
planted the crop under that Act, in 2002.
(2) The term ``tobacco quota holder'' means an owner, as of
July 1, 2002, of a tobacco farm marketing quota or a farm
acreage allotment established under the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1281 et seq.) for the 2002 marketing
year.
SEC. 102. PAYMENTS TO TOBACCO QUOTA HOLDERS.
(a) Payment Authority.--The Secretary of Agriculture shall use
funds of the Commodity Credit Corporation to make payments under this
section to tobacco quota holders as compensation for the loss of
tobacco quota asset value on account of the repeal of part I of
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1311 et seq.).
(b) Application.--To receive payments under this section, a person
shall prepare and submit to the Secretary of Agriculture an application
at such time, in such manner, and containing such information as the
Secretary may require, including information sufficient to demonstrate
that the person satisfies the definition of tobacco quota holder.
(c) Total Payment Amount.--
(1) In general.--The Secretary of Agriculture shall
determine the total amount to be paid to all tobacco quota
holders under this section with respect to each kind of
tobacco.
(2) Poundage quota tobacco.--For each kind of tobacco for
which the marketing quota is expressed in pounds, the total
amount available for payments to tobacco quota holders under
this section shall be equal to the product obtained by
multiplying--
(A) $8 per pound; by
(B) the total tobacco farm marketing quotas
established under the Agriculture Adjustment Act of
1938 for the 1998 marketing year for that kind of
tobacco.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment on an acreage basis, the Secretary shall convert the
tobacco farm marketing quotas or allotments established under
the Agriculture Adjustment Act of 1938 for the 1998 marketing
year for that kind of tobacco to a poundage basis before
executing the mathematical equation specified in paragraph (2).
(d) Base Quota Level.--
(1) In general.--The Secretary of Agriculture shall
determine the base quota level of each tobacco quota holder
with respect to each kind of tobacco.
(2) Poundage quota tobacco.--For each kind of tobacco for
which the marketing quota is expressed in pounds, the base
quota level for a tobacco quota holder shall be equal to the
average of the tobacco farm marketing quota established under
the Agriculture Adjustment Act of 1938 for the 2002 marketing
year for quota tobacco on the farm owned by the tobacco quota
holder.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment on an acreage basis, the base quota level for a
tobacco quota holder shall be equal to the product obtained
(based on a poundage conversion) by multiplying--
(A) the average tobacco farm marketing quota or
allotment established under the Agriculture Adjustment
Act of 1938 for the 2002 marketing year for the tobacco
quota holder's farm; by
(B) the average yield per acre for the tobacco
quota holder's farm for the kind of tobacco for that
marketing year.
(e) Payment Amount.--The Secretary of Agriculture shall make
payments to a tobacco quota holder with respect to a kind of tobacco
under this section in a total amount that bears the same ratio to the
amount determined by the Secretary under subsection (c) with respect to
that kind of tobacco as the base quota level of the tobacco quota
holder with respect to that kind of tobacco bears to the base quota
level of all tobacco quota holders with respect to that kind of
tobacco.
(f) Time for Payment.--The amount determined under subsection (e)
for a tobacco quota holder shall be paid in five equal installments
during each of the 2003 through 2007 crops of tobacco.
(g) Death of Tobacco Quota Holder.--If a tobacco quota holder who
is entitled to payments under this section dies and is survived by a
spouse or one or more dependents, the right to receive the payments
shall transfer to the surviving spouse or, if there is no surviving
spouse, to the estate of the tobacco quota holder.
SEC. 103. TRANSITION PAYMENTS FOR ACTIVE TOBACCO PRODUCERS.
(a) Payment Authority.--The Secretary of Agriculture shall use
funds of the Commodity Credit Corporation to make transition payments
under this section to active tobacco producers.
(b) Application.--To receive payments under this section, a person
shall prepare and submit to the Secretary of Agriculture an application
at such time, in such manner, and containing such information as the
Secretary may require, including information sufficient to demonstrate
that the person satisfies the definition of active tobacco producer.
(c) Total Payment Amount.--
(1) In general.--The Secretary of Agriculture shall
determine the total amount to be paid to all active tobacco
producers under this section with respect to each kind of
tobacco.
(2) Poundage quota tobacco.--For each kind of tobacco for
which the marketing quota is expressed in pounds, the total
amount available for payments to active tobacco producers under
this section shall be equal to the product obtained by
multiplying--
(A) $4 per pound; by
(B) the total tobacco farm marketing quotas
established under the Agriculture Adjustment Act of
1938 for the 1998 marketing year for that kind of
tobacco.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment on an acreage basis, the Secretary shall convert the
tobacco farm marketing quotas or allotments established under
the Agriculture Adjustment Act of 1938 for the 1998 marketing
year for that kind of tobacco to a poundage basis before
executing the mathematical equation specified in paragraph (2).
(d) Payment Quantity.--
(1) In general.--The Secretary of Agriculture shall
determine the payment quantity of tobacco for each active
tobacco producer with respect to each kind of tobacco.
(2) Poundage quota tobacco.--For each kind of tobacco for
which the marketing quota is expressed in pounds, the payment
quantity for an active tobacco producer shall be equal to the
average of the effective and marketing quotas for that quota
tobacco produced by the producer under the Agriculture
Adjustment Act of 1938 for the 2001 and 2002 marketing years.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment on an acreage basis, the payment quantity for an
active tobacco producer shall be equal to the average of the
actual pounds of that kind of tobacco produced by the active
tobacco producer for the 2001 and 2002 marketing years.
(e) Payment Amount.--
(1) All tobacco producers.--The Secretary of Agriculture
shall make payments to each active tobacco producer with
respect to a kind of tobacco under this section in a total
amount that bears the same ratio to the amount determined by
the Secretary under subsection (c) with respect to that kind of
tobacco as the payment quantity of the active tobacco producer
with respect to that kind of tobacco bears to the payment
quantities of all active tobacco producers with respect to that
kind of tobacco.
(2) Producers who forgo obtaining tobacco production
license.--If an active tobacco producer who is entitled to
transition payments under this section with respect to a kind
of tobacco agrees to permanently forgo the opportunity to
obtain a tobacco production license under section 304 for the
same type of tobacco, the Secretary shall pay to the active
tobacco producer, in addition to the amount determined under
paragraph (1), an amount equal to the product obtained by
multiplying--
(A) $2 per pound; by
(B) the payment quantity of the active tobacco
producer with respect to that kind of tobacco.
(f) Time for Payment.--The amount determined under subsection (e)
for an active tobacco producer shall be paid in five equal installments
during each of the 2003 through 2007 crops of tobacco, except that an
active tobacco producer who is also a quota owner with a base quota
level of 1,000 pounds or less and who no longer intends to engage in
tobacco production may elect to receive the total amount in the first
year after the date on which the agreement is signed.
(g) Death of Active Tobacco Producer.--If an active tobacco
producer who is entitled to transition payments under this section dies
and is survived by a spouse or one or more dependents, the right to
receive the payments shall transfer to the surviving spouse or, if
there is no surviving spouse, to the estate of the producer.
SEC. 104. TOBACCO PRODUCT MANUFACTURER AND IMPORTER USER FEES.
(a) In General.--The Secretary of Agriculture shall assess an
annual user fee, calculated in accordance with this section, upon each
tobacco product manufacturer and tobacco product importer that sells
tobacco products in domestic commerce in the United States. The
assessments shall commence during calendar year 2003, based on domestic
sales of tobacco products during fiscal year 2003.
(b) Base Amount of User Fee For Each Class of Tobacco Product.--
(1) The base amount of the user fee for cigarette
manufacturers and importers shall be $2,116,252,000.
(2) The base amount of the user fee for small cigar
manufacturers and importers shall be $1,051,000.
(3) The base amount of the user fee for large cigar
manufacturers and importers shall be $164,274,000.
(4) The base amount of the user fee for snuff manufacturers
and importers shall be $9,920,000.
(5) The base amount of the user fee for chewing tobacco
manufacturers and importers shall be $2,275,000.
(6) The base amount of the user fee for pipe tobacco
manufacturers and importers shall be $1,505,000.
(7) The base amount of the user fee for roll-your-own
tobacco manufacturers and importers shall be $3,231,000.
(c) Determination of Annual User Fee for Each Class of Tobacco
Product.--The total user fee to be assessed upon, and paid by, the
manufacturers and importers of each class of tobacco product in each
calendar year, as allocated pursuant to subsection (d), shall be the
base amount for that class of tobacco product provided in subsection
(b) multiplied by a fraction--
(1) the numerator of which is the total volume of domestic
sales of that class of tobacco product in the fiscal year
ending on September 30 of that calendar year; and
(2) the denominator of which is the total volume of
domestic sales of that class of tobacco product in fiscal year
2003.
(d) Allocation of Total User Fee Amounts by Market Share--
(1) Formula.--The user fee for each class of tobacco
product to be paid by each manufacturer or importer of that
class of tobacco product under subsection (a) shall be
determined in each year by multiplying--
(A) such manufacturer's or importer's market share,
as calculated with respect to the current calendar
year, of that class of tobacco product; by
(B) the total user fee amount for the current
calendar year, as determined under subsection (c), for
that class of tobacco product.
(2) Market share defined.--In this subsection, the term
``market share'' for each manufacturer or importer of a class
of tobacco product for the purpose of the assessment to be
calculated in the current calendar year shall be equal to that
manufacturer's or importer's respective share (expressed as a
decimal to the fourth place) of the total volume of domestic
sales of that class of tobacco product during the calendar year
immediately preceding the year of such assessment.
(e) Determination of Volume of Domestic Sales.--
(1) Based on certified reports.--The calculation of the
volume of domestic sales of a class of tobacco product by a
manufacturer or importer, and by all manufacturers and
importers as a group, shall be made by the Secretary of
Agriculture based on certified reports submitted by such
manufacturers and importers pursuant to subsection (f).
(2) Measurement criteria.--For purposes of the Secretary's
calculations under this subsection and the certifications under
subsection (f), the volumes of domestic sales shall be measured
as follows:
(A) With respect to cigarettes, in terms of the
numbers of cigarettes sold.
(B) With respect to small cigars, the number of
cigars weighing not more than three pounds per thousand
sold.
(C) With respect to large cigars, the number of
cigars weighing more than three pounds per thousand
sold.
(D) With respect to other classes of tobacco
products, in terms of the number of pounds, or fraction
thereof, or these tobacco products sold.
(f) Certification of Volume of Domestic Sales.-- Every manufacturer
and importer of tobacco products shall submit each year a certified
report to the Secretary of Agriculture setting forth for each class of
tobacco products the total, for the prior year, of such manufacturer's
or importer's domestic sales to wholesalers and retailers and directly
to consumers. These certified reports must be submitted to the
Secretary not later than March 1 of the year after the year for which
the certified report is being made.
(g) Termination.--The user fees imposed under this section shall
terminate at the end of the fiscal year in which the Secretary of
Agriculture determines that the Commodity Credit Corporation has been
fully reimbursed for all expenditures made using Commodity Credit
Corporation funds under this title.
SEC. 105. REIMBURSEMENT OF COMMODITY CREDIT CORPORATION EXPENDITURES.
Amounts collected by the Secretary of Agriculture under section 104
shall be used to reimburse the Commodity Credit Corporation for all
expenditures made under this title.
TITLE II--TOBACCO PRICE SUPPORT
SEC. 201. AVAILABILITY OF TOBACCO PRICE SUPPORT.
(a) New Approach to Price Support.--Section 106 of the Agricultural
Act of 1949 (7 U.S.C. 1445) is amended to read as follows:
``SEC. 106. TOBACCO PRICE SUPPORT.
``(a) Price Support Rate to Reflect Cost of Production.--
``(1) Establishment and annual adjustment.--The price of
each type of tobacco produced in the United States shall be
supported at a rate established by the Secretary, and adjusted
annually, to reflect the costs of production for producers of
that type of tobacco.
``(2) Determination of cost of production.--The Secretary
shall use the information collection and survey resources of
the Economic Research Service and National Agricultural
Statistics Service of the Department of Agriculture to
determine the cost of domestic tobacco production. The Economic
Research Service shall reevaluate the cost-of-production
annually, based on the survey of factors used by the Economic
Research Service, which shall be conducted once every five
years.
``(b) Consideration of International Price Levels.--In establishing
the price support rate for a type of tobacco, the Secretary shall also
consider the international tobacco price levels.
``(c) Consultation.--The Secretary shall consult with the Tobacco
Advisory Board, farm organizations, producer cooperatives and
associations, colleges and universities in tobacco-producing States,
and other interested persons when determining the costs of tobacco
production and establishing or adjusting the price support rate.
``(d) Differences in Grade.--The Secretary may take into
consideration differences in tobacco grades when establishing or
adjusting the price support rate for a type of tobacco.''.
(b) Elimination of References to Quota Tobacco in No Net Cost
Provisions.--(1) Section 106A of the Agricultural Act of 1949 (7 U.S.C.
1445-1) is amended as follows:
(A) In subsection (a), by striking ``quota'' each place it
appears in paragraphs (4), (5), and (6).
(B) By striking subsection (a)(7).
(C) In subsection (d), by striking ``quota'' each place it
appears in paragraphs (1), (3), and (7).
(D) In subsection (e), by striking ``quota''.
(2) Section 106B of the Agricultural Act of 1949 (7 U.S.C. 1445-2)
is amended as follows:
(A) In subsection (a)(5), by striking ``, for which
marketing quotas are in effect or for which marketing quotas
are not disapproved by producers''.
(B) In subsection (a)(8), by striking ``quota''.
(C) In subsection (d), by striking ``quota'' each place it
appears in paragraphs (1)(B) and (2)(A).
SEC. 202. REPEAL OF RELATED PROVISIONS.
(a) Parity Price Support.--Section 101 of the Agricultural Act of
1949 (7 U.S.C. 1441) is amended--
(1) in the first sentence of subsection (a), by striking
``tobacco (except as otherwise provided herein), corn'' and
inserting ``corn'';
(2) by striking subsection (c);
(3) in subsection (d)(3)--
(A) by striking ``, except tobacco,''; and
(B) by striking ``and no price support shall be
made available for any crop of tobacco for which
marketing quotas have been disapproved by producers;'';
and
(4) by redesignating subsections (d) and (e) as subsection
(c) and (d), respectively.
(b) Definition of Basic Agricultural Commodity.--Section 408(c) of
the Agricultural Act of 1949 (7 U.S.C. 1428(c)) is amended by striking
``tobacco,''.
SEC. 203. EFFECTIVE DATE.
This title and the amendments made by this title shall apply with
respect to the 2003 and subsequent tobacco crops.
TITLE III--TOBACCO PRODUCTION LICENSES
SEC. 301. DEFINITIONS OF HISTORIC TOBACCO PRODUCER AND LICENSED TOBACCO
PRODUCER.
In this title:
(1) The term ``historic tobacco producer'' means an owner,
operator, landlord, tenant, or sharecropper who bore,
individually or collectively, the risk of producing a crop of
tobacco on a farm for the 2002 crop year.
(2) The term ``licensed tobacco producer'' means an owner,
operator, landlord, tenant, or sharecropper who holds a license
issued under this title--
(A) to plant a crop of tobacco on a farm in a
specified county for the 2003 or a subsequent crop
year; and
(B) to harvest and market an authorized quantity of
tobacco.
SEC. 302. ANNUAL ESTIMATE OF TOBACCO PURCHASE INTENTIONS.
(a) Annual Estimate.--Not later than February 1 of each calendar
year, the Secretary of Agriculture shall publish in the Federal
Register an estimate of the quantity in pounds of each type of tobacco
necessary--
(1) to satisfy domestic use and export needs during the
next marketing year; and
(2) to maintain a reasonable reserve.
(b) Rules for Estimate.--When making an estimate under subsection
(a), the Secretary of Agriculture shall consider--
(1) the industry purchase estimates submitted under
subsection (c);
(2) export estimates; and
(3) an appropriate reserve stock adjustment.
(c) Industry Purchase Estimates.--Not later than December 1 of each
calendar year with respect to Flue-cured tobacco, and January 15 of
each calendar year with respect to Burley tobacco or other types of
tobacco, each domestic manufacturer of cigarettes or other type of
domestic tobacco-product manufacturer shall submit to the Secretary of
Agriculture a statement, by kind, of the quantity of Flue-cured
tobacco, Burley tobacco, and other types of tobacco that the
manufacturer intends to purchase, directly or indirectly, on the United
States auction markets or from licensed tobacco producers during the
next marketing year.
(d) Failure to Submit, or Over-Declaration of, Purchase
Intentions.--If a domestic manufacturer of cigarettes or other type of
domestic tobacco-product manufacturer fails to submit to the Secretary
of Agriculture purchase intentions as required under subsection (c) for
a marketing year, but subsequently purchases tobacco on the United
States auction markets or from licensed tobacco producers during that
marketing year, or if a domestic manufacturer of cigarettes or other
type of domestic tobacco-product manufacturer over-estimates such
purchase intentions by more than 5 percent, the domestic manufacturer
of cigarettes or other type of domestic tobacco-product manufacturer
shall be liable for a civil penalty up to an amount determined by
multiplying--
(1) the quantity of tobacco involved in the violation; by
(2) price support rate for the type of tobacco involved in
effect under section 106 of the Agriculture Act of 1949 at the
time of the violation.
(e) Enforcement.--The Secretary of Agriculture may enforce
subsection (d) in the courts of the United States.
(f) Consultation With Tobacco Advisory Board.--The Secretary of
Agriculture shall prepare the estimate under subsection (a) and
otherwise carry out this title in consultation with the Tobacco
Advisory Board appointed under title IV.
SEC. 303. NATIONAL TOBACCO MARKETING FACTOR.
The national marketing factor for a type of tobacco for a crop year
shall be the ratio of--
(1) the aggregate quantity of that type of tobacco
estimated by the Secretary of Agriculture under section 302 to
be necessary to satisfy domestic consumption and exports of
tobacco for the corresponding marketing year; to
(2) the estimated aggregate quantity of that type of
tobacco to be produced in the United States for that year.
SEC. 304. ISSUANCE OF TOBACCO PRODUCTION LICENSES.
(a) Initial Issuance to Historic Tobacco Producers.--
(1) Issuance.--
(A) Issuance required.--As soon as practicable
after the date of the enactment of this Act, the
Secretary of Agriculture shall issue to each historic
tobacco producer a tobacco production license for the
purpose of ensuring sufficient production of each type
of tobacco to satisfy annual purchase intentions for
that type of tobacco estimated under section 302, but
also preventing over-production of that type of
tobacco.
(B) Exception.--The Secretary shall not issue a
tobacco production license to an historic tobacco
producer with respect to a kind of tobacco if the
historic tobacco producer agreed under subsection (e)
of section 103 to permanently forgo the tobacco
production license for that type of tobacco in exchange
for additional transition payments under such section.
(2) Tobacco production history.--The tobacco production
license issued to an historic tobacco producer under paragraph
(1) shall specify the tobacco production history of the
producer for each type of tobacco for each county in which the
producer bore, individually or collectively, the risk of
producing a crop of tobacco on a farm in the county for the
2002 crop year. In the case of an historic tobacco producer who
bore 100 percent of the risk of producing a type of tobacco on
a farm for the 2002 crop year, the tobacco production history
of the historic tobacco producer for that type of tobacco in
a county shall be equal to the 2002 marketing and effective quota of
that type tobacco produced by the producer in the county for commercial
use during the 2002 crop year. In the case of an historic tobacco
producer who bore less than 100 percent of the risk of production, the
Secretary of Agriculture shall adjust the tobacco production history to
reflect the percentage of risk that was borne by the producer.
(3) Adjustment authority.--An historic tobacco producer may
petition the Secretary of Agriculture to increase the tobacco
production history determined under paragraph (2) for the
producer for a type of tobacco on the grounds that the
producer's 2002 production under-represents the producer's
historic production of that type of tobacco.
(4) Consolidation of counties.--If the initial issuance of
a tobacco production license to an historic tobacco producer
for a type of tobacco would result in the producer receiving a
license for that type of tobacco for more than one county, the
producer may elect to consolidate the licenses in a single
county in which the producer bore or shared in the risk of
producing a crop of that type of tobacco for the 2002 crop
year. The option to make this election shall be provided only
once.
(b) Subsequent Issuance.--
(1) In general.--If a tobacco production license is
surrendered or revoked, the Secretary of Agriculture shall
transfer the license and the corresponding tobacco production
history to beginning tobacco producers or licensed tobacco
producers in the following order of preference:
(A) Producers in the same county as the county in
which the tobacco production history was derived.
(B) Producers in the same State.
(C) Producers in counties in other States in which
licensed tobacco producers are operating.
(2) Reservation for beginning producers.--In all instances
specified in subparagraphs (A), (B), and (C) of paragraph (1),
the Secretary shall reserve for beginning tobacco producers at
least five percent of the tobacco production history
surrendered or revoked under this section.
(3) Producers who forgo obtaining tobacco production
license.--The tobacco production history of those historic
tobacco producers who agree under section 103(e) to permanently
forgo the opportunity to obtain a tobacco production license
under subsection (a) shall also be available to the Secretary
for distribution as provided in paragraph (1).
(c) Limitations on Use of License.--
(1) In general.--A tobacco production license specifying a
particular type of tobacco and the county in which that type of
tobacco may be grown may not be used as the basis to grow a
different type of tobacco or to grow that type of tobacco in a
different county.
(2) Revocation.--Any use of a tobacco production license
contrary to this subsection shall result in the revocation of
the license.
(d) Limitations on Sale, Lease, or Transfer of License.--
(1) Sale prohibited.--A tobacco production license and the
corresponding tobacco production history may not be sold or
leased.
(2) Transfer under limited circumstances.--A licensed
tobacco producer may not transfer a tobacco production license
and the corresponding tobacco production history unless--
(A) in the case of a licensed tobacco producer who
is in a partnership, the transfer is among the
partners; or
(B) in the case of a licensed tobacco producer who
is an individual, the transfer is made to the spouse,
parent, brother, sister, or natural or adopted child of
the licensed tobacco producer.
(3) Revocation.--Any sale, lease, or transfer of a tobacco
production license or the corresponding tobacco production
history contrary to this subsection shall result in the
revocation of the license.
(e) Surrender or Revocation of License for Non-Use.--
(1) Surrender.--A licensed tobacco producer may surrender a
tobacco production license and the corresponding tobacco
production history to the Secretary of Agriculture at any time.
(2) Revocation.--The Secretary of Agriculture shall revoke
the tobacco production license and the corresponding tobacco
production history of a licensed tobacco producer if the
licensed tobacco producer--
(A) fails to share, individually or collectively,
in 100 percent of the risk of producing a crop of
tobacco of the type specified in the tobacco production license for any
year; or
(B) fails to produce at least 75 percent of the
quantity of that type of tobacco specified in the
tobacco production license for two out of three years,
unless that Secretary determines the failure was due to
damaging weather or related condition.
(3) Annual monitoring of risk.--The Secretary of
Agriculture, acting through the Farm Service Agency, shall
monitor at least five percent of all licensed tobacco producers
annually to ensure that the producers comply with the risk-
sharing requirements of paragraph (2). The licensed tobacco
producers to be monitored in a given crop year under the
authority of this paragraph shall be selected at random.
Nothing in this paragraph prevents the Secretary from
instituting an investigation of a specific licensed tobacco
producer if the Secretary has reasonable cause to believe the
producer is not complying with such risk-sharing requirements.
SEC. 305. ANNUAL AUTHORIZED TOBACCO PRODUCTION UNDER TOBACCO PRODUCTION
LICENSES.
(a) Notification of Licensed Tobacco Producers.--As soon as
practicable after preparing the estimate required by section 302 for a
type of tobacco for a marketing year, the Secretary of Agriculture
shall notify each licensed tobacco producer of that type of tobacco of
the authorized quantity of tobacco that the producer may produce in a
county in the corresponding crop year under the tobacco production
license.
(b) Determination of Authorized Production Levels.--The authorized
tobacco production level for a licensed tobacco producer for a type of
tobacco in a county for a crop year is equal to the product of--
(1) the tobacco production history of the producer for that
type of tobacco in that county; and
(2) the national tobacco marketing factor for that year
determined by the Secretary of Agriculture under section 303.
(c) Excess Production.--Except as provided in subsection (e), if a
licensed tobacco producer harvests and markets tobacco in excess of the
quantity specified in the producer's tobacco production license or any
other person produces tobacco without a tobacco production license, the
licensed tobacco producer or other person shall be liable for a civil
penalty up to an amount determined by multiplying--
(1) the quantity of tobacco involved in the violation; by
(2) price support rate for the type of tobacco involved in
effect under section 106 of the Agriculture Act of 1949 at the
time of the violation.
(d) Enforcement.--The Secretary of Agriculture may enforce
subsection (c) in the courts of the United States.
(e) Limited Authority to Exceed License.--If the Tobacco Advisory
Board notifies the Secretary of Agriculture that the actual production
of a type of tobacco for a crop year will be less than 80 percent of
the production authorized under all licenses issued for that type of
tobacco, the Secretary may authorize a licensed tobacco producer of
that type of tobacco to harvest and market tobacco in excess of the
quantity specified in the producer's tobacco production license. The
Secretary shall establish a mechanism under which a licensed tobacco
producer may apply for the authority to exceed the quantity specified
in the producer's license.
SEC. 306. TERMINATION OF MARKETING QUOTA PROGRAMS AND REPEAL OF RELATED
PROVISIONS.
(a) Tobacco Control Act.--The Act of April 25, 1936 (commonly known
as the Tobacco Control Act; 7 U.S.C. 515-515k), is repealed.
(b) Commodity Handling Orders.--Section 8c(2) of the Agricultural
Adjustment Act (7 U.S.C. 608c(2)), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended by striking
``tobacco,''.
(c) Processing Tax.--Section 9(b) of the Agricultural Adjustment
Act (7 U.S.C. 609(b)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended--
(1) in paragraph (2), by striking ``tobacco,''
(2) in paragraph (6)(B)(i), by striking ``, or, in the case
of tobacco, is less than the fair exchange value by not more
than 10 per centum,''.
(d) Burley Tobacco Import Review.--Section 3 of Public Law 98-59 (7
U.S.C. 625) is repealed.
(e) Declaration of Policy.--Section 2 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking
``tobacco,''.
(f) Definitions.--Section 301(b) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1301(b)) is amended--
(1) in paragraph (3)--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as
subparagraph (C);
(2) in paragraph (6)(A), by striking ``tobacco,'';
(3) in paragraph (7), by striking the following:
``Tobacco (flue-cured), July 1-June 30;
Tobacco (other than flue-cured), October 1-September 30);''
(4) in paragraph (10)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B);
(5) in paragraph (11)(B), by striking ``and tobacco'';
(6) in paragraph (12), by striking ``tobacco,'';
(7) in paragraph (14)--
(A) by striking ``(A)'' in subparagraph (A); and
(B) by striking subparagraphs (B), (C), and (D);
(8) by striking paragraph (15);
(9) in paragraph (16)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B);
(10) by striking paragraph (17); and
(11) by redesignating paragraph (16) as paragraph (15).
(g) Parity Payments.--Section 303 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1303) is amended in the first sentence by
striking ``rice, or tobacco'' and inserting ``or rice''.
(h) Marketing Quotas.--Part I of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) is
repealed.
(i) Administrative Provisions.--Section 361 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1361) is amended by striking
``tobacco,''.
(j) Adjustment of Quotas.--Section 371 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
(1) in the first sentence of subsection (a) by striking
``peanuts, or tobacco'' and inserting ``or peanuts''; and
(2) in the first sentence of subsection (b), by striking
``peanuts or tobacco'' and inserting ``or peanuts''.
(k) Reports and Records.--Section 373 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
(1) by striking ``peanuts, or tobacco'' each place it
appears in subsections (a) and (b) and inserting ``or
peanuts''; and
(2) in subsection (a)--
(A) in the first sentence by striking ``all persons
engaged in the business of redrying, prizing, or
stemming tobacco for producers,''; and
(B) in the last sentence by striking ``$500'' and
all that follows through the period at the end of the
sentence and inserting ``$500.''.
(l) Regulations.--Section 375(a) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1375(a)) is amended by striking ``peanuts, or
tobacco'' and inserting ``or peanuts''.
(m) Eminent Domain.--Section 378 of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1378) is amended--
(1) in the first sentence of subsection (c) by striking
``cotton, tobacco, and peanuts'' and inserting ``cotton and
peanuts''; and
(2) by striking subsections (d), (e), and (f).
(n) Burley Tobacco Farm Reconstitution.--Section 379 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1379) is amended--
(1) in subsection (a)--
(A) by striking ``(a)''; and
(B) in paragraph (6) by striking ``, but this
clause (6) shall not be applicable in the case of
burley tobacco''; and
(2) by striking subsections (b) and (c).
(o) Acreage-Poundage Quotas.--Section 4 of the Act of April 16,
1955 (Public Law 89-12; 7 U.S.C. 1314c note), is repealed.
(p) Burley Tobacco Acreage Allotments.--The Act of July 12, 1952 (7
U.S.C. 1315), is repealed.
(q) Transfer of Allotments.--Section 703 of the Food and
Agriculture Act of 1965 (7 U.S.C. 1316) is repealed.
(r) Advance Recourse Loans.--Section 13(a)(2)(B) of the Food
Security Improvements Act of 1986 (7 U.S.C. 1433c-1(a)(2)(B)) is
amended by striking ``tobacco and''.
(s) Tobacco Field Measurement.--Section 1112 of the Omnibus Budget
Reconciliation Act of 1987 (Public Law 100-203) is amended by striking
subsection (c).
(t) Liability.--The amendments made by this section shall not
affect the liability of any person under any provision of law in effect
before the amendments take effect as provided under subsection (u).
SEC. 307. EFFECTIVE DATE.
This title and the amendments made by this title shall apply with
respect to the 2003 and subsequent tobacco crops.
TITLE IV--TOBACCO ADVISORY BOARD
SEC. 401. ESTABLISHMENT AND DUTIES OF TOBACCO ADVISORY BOARD.
(a) Establishment.--The Secretary of Agriculture shall establish a
permanent advisory board in the Department of Agriculture to be known
as the Tobacco Advisory Board.
(b) Members.--The Tobacco Advisory Board shall consist of 12
appointed by the Secretary of Agriculture as follows:
(1) Three licensed tobacco producers of Flue-cured tobacco.
(2) Three licensed tobacco producers of Burley tobacco.
(3) One licensed tobacco producer of dark-type tobacco.
(4) One representative of United States cigarette
manufacturers.
(5) One representative of United States moist snuff
manufacturers.
(6) One dealer.
(7) One representative of Flue-cured tobacco marketing
facilities.
(8) One representative of Burley tobacco marketing
facilities.
(c) Non-Voting Members.--The Tobacco Advisory Board shall also have
the following non-voting members:
(1) The Secretary of Agriculture, or an officer or employee
of the Department of Agriculture.
(2) A tobacco analyst of the Department of Agriculture,
appointed by the Secretary of Agriculture.
(3) The United States Trade Representative, or the designee
of the United States Trade Representative.
(4) One representative from a college or university in a
predominately Flue-cured tobacco producing State.
(5) One representative from a college or university in a
predominately Burley tobacco producing State.
(d) Duties.--The Tobacco Advisory Board shall be responsible for--
(1) making recommendations for modifications of the tobacco
price support program under section 106 of the Agriculture Act
of 1949;
(2) making recommendations for modifications of the tobacco
production license program under title III;
(3) determining adequate reserve stock levels for each type
of tobacco;
(4) conducting oversight regarding tobacco marketing
issues, such as opening sales dates, marketing regulations, and
grading fees; and
(5) making recommendations regarding a simplification and
reform of the grading system for tobacco, which the Secretary
of Agriculture is authorized to implement.
TITLE V--ASSISTANCE TO TOBACCO-DEPENDENT COMMUNITIES
SEC. 501. CENTER FOR TOBACCO-DEPENDENT COMMUNITIES.
(a) Findings.--The Congress finds the following:
(1) The economies of many local communities are dependent
on tobacco production.
(2) Many tobacco-producing communities are facing
significant challenges in developing non-tobacco income, and
remain therefore quite dependent on tobacco and vulnerable to
changes in the tobacco-growing industry.
(3) Greater analysis and study is needed of economic
conditions in these communities in order to gain critical
information, including identification of the interconnections
among various tobacco-related activities, the degree to which
the economic base of these communities is diversified, and the
extent to which these communities are dependent on other
declining economic sectors.
(b) Corporation Established.--There is authorized to be established
a nonprofit corporation, to be known as the ``Center for Tobacco-
Dependent Communities'', which will not be an agency or establishment
of the United States Government. The Center shall be subject to the
provisions of this section, and (to the extent consistent with this
section) to the laws and regulations applicable to nonprofit
corporations in the State in which the corporation is established.
(c) Board of Directors.--
(1) The Center shall have a Board of Directors consisting
of 7 members. Six of the members of the Board shall be
appointed by the President, by and with the advice and consent
of the Senate, and such members shall appoint the Center's
Executive Director, who shall also be a member of the Board. No
more than 3 of the 6 members appointed by the President may be
members of the same political party.
(2) The 6 members of the Board appointed by the President
shall be citizens of the United States who have knowledge and
experience regarding the matters for which the Center is
responsible, and who are eminent in issues related to rural
development (including small-crop agriculture; entrepreneurial
activity; and industrial, small business and community
development).
(3) The members of the initial Board of Directors shall
serve as incorporators and shall take whatever actions are
necessary to establish the Center.
(4) The term of office of each member of the Board
appointed by the President shall be 4 years, except that of the
members initially so appointed, 3 members shall serve for a 2-
year term. Any member whose term has expired may serve until
such member's successor has taken office, or until the end of
the calendar year in which such member's term has expired,
whichever is earlier. Any member appointed to fill a vacancy
occurring prior to the expiration of the term for which such
member's predecessor was appointed shall be appointed for the
remainder of such term. No member of the Board shall be
eligible to serve in excess of 2 consecutive full terms.
(5) Any vacancy in the Board shall not affect its power,
but shall be filled in the manner consistent with this section.
(6) Members of the Board shall attend not less than 50
percent of all duly convened meetings of the Board in any
calendar year. A member who fails to meet the requirement of
the preceding sentence shall forfeit membership, and the
President shall appoint a new member to fill such vacancy not
later than 30 days after such vacancy is determined by the
Chairman of the Board.
(7) Members of the Board shall annually elect 1 of their
members to be Chair and elect 1 or more of their members as a
Vice Chair or Chairs. The members of the Board shall not, by
reason of such membership, be officers or employees of the
United States. Members of the Board shall, while attending
meetings of the Board or while engaged in duties related to
such meetings or other activities of the Board pursuant to this
section, be entitled to receive compensation at the rate of
$150 per day, including traveltime. No Board member shall
receive compensation of more than $10,000 in any fiscal
year. While away from their homes or regular places of business, Board
members shall be allowed travel and actual, reasonable, and necessary
expenses.
(8) All meetings of the Board, including any committee of
the Board, shall be open to the public.
(d) Officers and Employees.--
(1) The Center shall have a President, and such other
officers as may be named and appointed by the Board for terms
and at rates of compensation fixed by the Board. No officer or
employee of the Corporation may be compensated by the
Corporation at an annual rate of pay which exceeds the rate of
basic pay in effect from time to time for level I of the
Executive Schedule under section 5312 of title 5, United States
Code. No individual other than a citizen of the United States
may be an officer of the Center. No officer of the Center,
other than the Chair or a Vice Chair, may receive any salary or
other compensation (except for compensation for services on
boards of directors of other organizations that do not receive
funds from the Center, on committees of such boards, and in
similar activities for such organizations) from any sources
other than the Center for services rendered during the period
of his or her employment by the Center. Service by any officer
on boards of directors of other organizations, on committees of
such boards, and in similar activities for such organizations
shall be subject to annual advance approval by the Board and
subject to the provisions of the Center's Statement of Ethical
Conduct. All officers shall serve at the pleasure of the Board.
(2) Except as provided in subsection (c)(1), no political
test or qualification shall be used in selecting, appointing,
promoting, or taking other personnel actions with respect to
officers, agents, and employees of the Center.
(e) Nonprofit and Nonpolitical Nature of the Center.--
(1) The Center shall have no power to issue any shares of
stock, or to declare or pay any dividends.
(2) No part of the income or assets of the Center shall
inure to the benefit of any director, officer, employee, or any
other individual except as salary or reasonable compensation
for services.
(3) The Center may not contribute to or otherwise support
any political party or candidate for elective public office.
(f) Purposes and Activities of the Center.--
(1) In order to achieve the objectives and to carry out the
purposes of this section, the Center shall provide economic and
community development assistance for tobacco communities to
assist them in making the transition from tobacco-based
economies. The primary activities of the Center shall be
agricultural and entrepreneurial, and shall include outreach
and education to tobacco quota owners, growers and others
(including small communities) with limited ability to obtain
access to current economic development resources. In
particular, the Center shall provide assistance to tobacco-
producing communities identified by the Economic Research
Service within the Department, with emphasis on those
communities that are especially dependent on tobacco production
for the generation of revenue.
(2) The Center is authorized to--
(A) provide communities and producers with targeted
technical assistance;
(B) convene meetings and conduct workshops and
conferences;
(C) serve as a clearinghouse for exchange of
information regarding best industry practices;
(D) provide research and policy development
activities;
(E) serve as an advocate for communities making the
transition from tobacco-based economies;
(F) make grants to individuals or entities,
including challenge grants, community mini-grants,
technical assistance grants and grants for pilot
projects and demonstrations;
(G) hire or accept the voluntary services of
consultants, experts, advisory boards, and panels to
aid the Center in carrying out the purposes of this
section;
(H) accept bequests, donations, and other forms of
assistance; and
(I) take such other actions as may be necessary to
accomplish the purposes set forth in this section.
(3) Nothing contained in paragraph (2) shall be construed
to commit the Federal Government to provide any sums for the
payment of any obligation of the Center.
(4) To carry out the foregoing purposes and engage in the
foregoing activities, the Center shall have the usual powers
conferred upon a nonprofit corporation by applicable laws and
regulations of the State in which the corporation is
established, except that the Center is prohibited from owning
or operating any tobacco-related interest.
(g) Annual Report.--
(1) The Center shall submit an annual report for the
preceding fiscal year ending September 30 to the President for
transmittal to the Congress on or before the 15th day of May of
each year. The report shall include--
(A) a comprehensive and detailed report of the
Center's operations, activities, financial condition,
and accomplishments under this section and such
recommendations as the Center considers appropriate;
and
(B) a listing of each organization that receives a
grant from the Center, the purpose of such grant, and
the amount of each such grant.
(2) The officers and directors of the Center shall be
available to testify before appropriate committees of the
Congress with respect to such report, the report of any audit
made by the Comptroller General of the United States pursuant
to this section, or any other matter which such committees may
determine.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Agriculture, from funds derived from
the user fees imposed under section 104, $5,000,000 for each of the
fiscal years 2003 through 2013 to provide funds for the operations and
activities of the Center. Funds so appropriated shall remain available
until expended. The Corporation shall establish an annual budget for
use in allocating amounts made available to the Center under this
section.
(i) Financial Management and Records.--
(1)(A) The accounts of the Center shall be audited annually
in accordance with generally accepted auditing standards by
independent certified public accountants or independent
licensed public accountants certified or licensed by a
regulatory authority of a State or other political subdivision
of the United States. The audits shall be conducted at the
place or places where the accounts of the Center are normally
kept. All books, accounts, financial records, reports, files,
and all other papers, things, or property belonging to or in
use by the Center and necessary to facilitate the audits shall
be made available to the person or persons conducting the
audits; and full facilities for verifying transactions with the
balances or securities held by depositories, fiscal agents and
custodians shall be afforded to such person or persons.
(B) The report of each such independent audit shall be
included in the annual report required by this subsection. The
audit report shall set forth the scope of the audit and include
such statements as are necessary to present fairly the Center's
assets and liabilities, surplus or deficit, with an analysis of
the changes therein during the year, supplemented in reasonable
detail by a statement of the Center's expenses during the year,
and a statement of the sources and application of funds,
together with the independent auditor's opinion of such
statements.
(2)(A) The financial transactions of the Center for any
fiscal year during which Federal funds are available to finance
any portion of its operations may be audited by the General
Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions and
under such rules and regulations as may be prescribed by the
Comptroller General of the United States. Any such audit shall
be conducted at the place or places where accounts of the
Center are normally kept. The representative of the General
Accounting Office shall have access to all books, accounts,
records, reports, files, and all other papers, things, or
property belonging to or in use by the Center pertaining to its
financial transactions and necessary to facilitate the audit,
and they shall be afforded full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians. All such books,
accounts, records, reports, files, papers and property of the
Center shall remain in possession and custody of the Center.
(B) A report of each such audit shall be made by the
Comptroller General to the Congress. The report to the Congress
shall contain such comments and information as the Comptroller
General may deem necessary to inform Congress of the financial
operations and condition of the Center, together with such
recommendations with respect thereto as the Comptroller General
may consider advisable. The report shall also show specifically
any program, expenditure, or other financial transaction or
undertaking observed in the course of the audit, which, in the
opinion of the Comptroller General, has been carried on or made
without authority of law. A copy of each report shall be
furnished to the President, to the Secretary, and to the Center
at the time submitted to the Congress.
(3)(A) Not later than 1 year after the date of enactment of
this Act, the Center, in consultation with the Comptroller
General, and as appropriate with others, shall develop
accounting principles which shall be used uniformly by all
individuals and entities receiving funds under this section,
taking into account organizational differences among various
categories of such entities. Such principles shall be designed
to account fully for all funds received and expended by such
entities under this section.
(B) Each individual and entity receiving funds under this
section shall be required--
(i) to keep its books, records, and accounts in
such form as may be required by the Center;
(ii)(I) to undergo a biennial audit by independent
certified public accountants or independent licensed
public accountants certified or licensed by a
regulatory authority of a State, which audit shall be
in accordance with auditing standards developed by the
Center, in consultation with the Comptroller General;
or
(II) to submit a financial statement in lieu of the
audit required by subclause (I) if the Center
determines that the cost burden of such audit on such
entity is excessive in light of the financial condition
of such entity; and
(iii) to furnish biennially to the Center a copy of
the audit report required pursuant to clause (ii), as
well as such other information regarding finances
(including an annual financial report) as the Center
may require.
(C) Any recipient of assistance by grant under this
section shall keep such records as may be reasonably
necessary to disclose fully the amount and the
disposition by such recipient of such assistance, the
total cost of the project or undertaking in connection
with which such assistance is given or used, and the
amount and nature of that portion of the cost of the
project or undertaking supplied by other sources, and
such other records as will facilitate an effective
audit.
(D) The Center or any of its duly authorized
representatives shall have access to any books,
documents, papers, and records of any recipient of
assistance for the purpose of auditing and examining
all funds received or expended by the recipient under
this section. The Comptroller General of the United
States or any duly authorized representatives of the
Comptroller General also shall have access to such
books, documents, papers, and records for the purpose
of auditing and examining all funds received or
expended under this section during any fiscal year for
which Federal funds are available to the Center.
(4) The Center shall maintain the information described in
paragraph (3) at its offices for public inspection and copying
for at least 3 years, according to such reasonable guidelines
as the Center may issue. This public file shall be updated
regularly.
&lt;all&gt;